SB291 Summary

• Allows policy renewals to be transferred from an insurer to an affiliate or subsidiary without requiring a nonrenewal notice if the affiliate has a financial strength rating at least as good as the original insurer as issued by an industry-recognized independent rating company.

• Requires insurers to provide policyholders with notice of renewal in an affiliate or subsidiary stating the reason for change, that coverage will be provided by the affiliate unless the policyholder seeks coverage elsewhere, and relevant policy changes including deductibles and premiums.

• Mandates insurers notify the Insurance Commissioner at least 90 days in advance of mailing bulk renewal notices to policyholders regarding transfers to affiliates or subsidiaries.

• Clarifies that the bill does not repeal or supersede requirements under the Insurance Holding Company Regulatory Act, including material transaction provisions between insurers and affiliates.

• Amends Arkansas insurance code sections 23-79-307, 23-79-102, 23-88-105, and 23-89-301 to add or modify definitions of "renewal" to include affiliate and subsidiary transfers meeting financial strength criteria.